Cemex challenges nationalisation

President Chavez (middle) has a number of nationalisation plans

Mexican cement giant Cemex plans to go to the World Bank to seek arbitration after Venezuela's government seized the firm's local subsidiary.

Cemex argues that the move to take over the firm's assets in Venezuela and nationalise the business, is illegal.

Unlike other cement firms Holcim and Lafarge, which have agreed to hand over local subsidiaries to the Venezuelan government, Cemex has yet to agree.

President Hugo Chavez plans to nationalise a number of businesses.

'International law'

Government officials, with the backing of the National Guard, took over the firm's factories on Monday after 60 days of talks ended without agreement.

Cemex now intends to go to the International Centre for Settlement of Investment Disputes, arguing that the move was a "flagrant violation" of the country's constitution.

The firm said it was offered $650m for its local operations - a sum that "significantly" undervalued the business. It had wanted $1.3bn (£697m)

"The Venezuelan government actions highlight a lack of respect for the principles of international law and the treaties relating to reciprocal protection of investments," said the firm.

France's Lafarge and Swiss group Holcim had already handed over local subsidiaries to Caracas by the time Cemex was seized on Monday.

Other industries set to be nationalised include banking and telecommunications.